Costs and Benefits
1. We do not charge the business/employer.
2. The account is set up for the employee or employees (team) and the money goes direct to them.
3. As you do not have contact with the money it is exempt from PAYE and the employee is responsible for their tax which is 20% as with cash tips.
Clarification given on tax liability to tipmywaiter from the HMRC link below on twitter:
https://twitter.com/TipMyWaiters
4. All set up costs and subscription fees are billed at the end of every month to the staff. They only pay a small monthly subscription fee and with the right payment app a small card charge.
5. With cash disappearing fast, this is the future. Keep your staff happy with this transparent tipping solution.
6. Fraud. We find SumUp a very trusted, low cost and easy to register and use app. Signed up for by the employee or team (see tax) is very good but other QR Payment Apps are available.
7. We use MyDocSafe for all documents, portals and billing, this is an encrypted document service keeping personal information safe and in line with legislation we comply with right to work laws
8. We have support resolution in MyDocSafe. Any problems the staff can contact us direct via their portal.
9. We have a simple formula for equally dividing tips for staff teams according to the hours they work.
Advertising Choices
1. We allow you to have control of this.
2. We can adapt all advertising to meet your needs.
3. We offer table talkers. postcard adverts and various types of waterproof stickers they can be adapted to your needs. We only require our logo and a small tip message.
4. Discretion. We are aware that you may not wish to seem to pushy regarding tipping, this why we think we offer a very discreet service that puts no pressure on the customer to tip, as this is done away from the till or bill and doesn't require face to face contact to tip.
5. Full consultation on your choices. We charge the team or employee for the extra advertising costs, but not until the end of the month, but you may wish to pay as goodwill to your staff, not a problem.
6. Got something new on the menu or an event coming up. Post it on our Social Media. We regularly Tweet or Post on hospitality platforms.
Tax law on tipping
The tax on tipping is set out here:
https://www.gov.uk/tips-at-work/tips-and-tax
In summary -:
Any tips given that are a part of your work are taxable, they are not a gift.
All cash tips must be declared by your staff to the HMRC through their personal tax account.
The HMRC will, in the absence of any declaration of cash tips, decide how much your staff may have earned and put up their tax code to recover the money, this means you pay more tax and NI for them too.
As we are the same as cash, being an outside agent, your staff will pay any tax on their tips through their personal tax account, which we have links on the website and portal for them.
You do not pay the tax on their tips via tipmywaiter.
Twitter reply from the HMRC to tipmywaiter:
https://twitter.com/TipMyWaiters
If you take tips through your tills or card machines, the tips have to be declared through the payroll.
We will be adding a signed tax declaration for your staff who join us, setting out their tax responsibility using tipmywaiter
